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by JonButtress Capitalism is all about giving the people what they want. Well, selling the people what they want may be a better way of stating it. This is basic notion is the very reason we have hybrid vehicles today.
Any type of trend soon grows attributes that are often not exactly accurate. These can be both positive and negative attributes, depending on who is pushing the point. Two false ones have surrounded the hybrid vehicle.
Everyone hates taxes, but not when it comes to hybrids. The common myth is you can get a huge tax benefit if you buy a hybrid. As with anything involving taxes, you should know this is sometimes true and sometimes not.
When taxes are invovled, it should be no surprise there are pitfalls with claiming a tax credit for buying one. The first requirement is you must buy a new vehicle, not a used one. The second requirement is the IRS must have approved the vehicle.
Most people do not realize the tax credit you get for buying a hybrid is actually a moving scale. It is initially set by the IRS at an amount up to $4,000. Each quarter thereafter, the IRS reviews the sales figures and may or may not lower the tax credit.
The hybrid tax credit was designed to get people interested in hybrids. Given this fact, it should be no surprise the credit is phased out after a certain number of vehiles are sold. The beloved Prius, in fact, is about to lose its credit.
Why does the tax credit phase out for hybrids? Well, you have to realize why it was put into law in the first place. It was intended to motivate people to buy such vehicles in light of our oil and environmental problems. It was not intended to be a windfall for manufacturers.
Batteries. Who would have thought we would discuss them in this article, but a myth exists regarding their use in hybrids. The myth is they don't last very long. This is suggested to be a big negative because replacement costs are high.
In truth, there is no requirement that hybrid batteries be changed every 40,000 miles or so. Most brands come with warranties of up to 100,000 miles. Although hybrids are fairly new, the batteries are reported to last well into the hundreds of thousands of miles.
Hybrids represent definitive progress in kicking our oil addiction. That being said, they are not the cure all to it. When deciding whether to buy a hybrid, ignore the fluff, collect the facts and then do what you think is right.
Guest Author Jon Buttress writes about how to claim the hybrid tax credit for HybridCarDealerDepot.com |
